NZD/USD Under Pressure Ahead of Fed Interest Rate Hike

The New Zealand Dollar (NZD) has partially recovered from its early losses against the US Dollar (USD), but remains under pressure ahead of the Federal Reserve's monetary policy announcement on Wednesday.

Investors are increasingly confident that the Fed will hike interest rates by 25 basis points to 3.75%-4.00%, which would further strengthen the USD.

Economists at ING have changed their view on the Fed's rate hike, citing Chair Kevin Warsh's address at the Jackson Hole symposium as a key factor in their decision.